You probably wont pass emissions with any turbo system.... and no I wouldnt run a cat with a rear mount system. A friend of mine has one on his 350 that we put together for about 3k. He has been running the piss out of it for about a year now with no probs. He has the VQ35DE and hit 390whp on 8psi.
He doesnt drive in the rain so no worry about water, and his filter gets just as dirty as before with it in the front. Plus he doesnt have to worry about moving power steering lines or frying anything that might be in the general vacinity of the turbo..... Oh and he is at full boost around 3200......
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